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ezybizindia
Income Tax Return
Asked a question 18 days ago

What makes India an attractive destination for foreign company registration? Every year, thousands of multinational corporations set up their business in India since over the years; India has become one of the most sought after destination for doing business. It is 7th largest economies in the world and also one of the most developing economies of the world. Well, there are many factors which have encouraged the recent surge in foreign company registration in India. In this write up, we will touch base upon some of the factors which have resulted in more and more foreign company registration in India in recent years. a) World’s largest democracy India is the world’s biggest democracy which guarantees a stable political environment and an friendly business atmosphere with proper law and order in place where trade and business can flourish freely without any fear, unlike other forms of governance where instability may creeps on every now and then or where globalized trade is not possible without government intervention. b) Large middle class consumer base Another advantage of India is that she is one of the biggest consumer markets in the world with approx. 550 Million consumer bases with strong purchasing power. These attract global companies for doing trade with India and sell their goods and services in India. This has resulted in almost all the fortune 500 companies have set up their businesses in India in one form or the other. Out of the various options, available for business set up in India, subsidiary company registration is one of the most popular and preferable mode of entity registration in India. c) Second largest English speaking youth India has focused a lot on her education system in last 40-50 years as a result of which India is home to approx. 20 Million English speaking youth, which is second largest in the world. This provides an advantage while communicating with the global audience. Foreign companies found it convenient to speak with local Indians in English which facilitates doing business in India. d) Availability of high class skilled and unskilled labor at lower cost India has huge manpower resources both unskilled, skilled as well as highly skilled labor. Further, the cost of manpower resources in India is comparatively very less as compared to the western world. Although Indian labor laws are not quite labor friendly, still cheap labor is a major advantage. e) Pioneer in Information technology, software development and other sectors When it comes to Information Technology, India is pioneer in the same. It is world’s largest offshoring destination for IT companies across the globe. The estimated revenue from this sector is approx. USD 150 billion every year. Further, this sector contributes to approx. 45% of India’s overall export. India is global digital capabilities hub with 75% of global digital talent within the country. Largest global outsourcing industry in Service Sector. Approximate share of India’s IT industry would be approx. 10% of India’s GDP by year 2025 Thus, from the foregoing, it may be concluded that above are some of the factors which has contributed in attracting foreign investment in India and as a result of which, more and more multinationals have opted for foreign company registration in India since India and China both, have tremendous potential and opportunity to change the economic landscape of the world in next 10-15 years. https://ezybizindia.in/procedure-for-incorporation-of-foreign-subsidiary-in-india/

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